Silver dropped to the week lowest till 61951 but latter recover on buying and settled at 63110 that is down by -0.67%, fall was seen as pessimism on a US budget resolution eroded demand for commodities. While Republicans and Democrats hope to develop a new budgetary framework to replace the fiscal cliff, which would trigger more than $600 billion in spending cuts and new taxes that could slow growth and tip the US economy back into recession. But talks have been partisan and contentious, making the ultimate outcome far from certain. Democratic Senate majority leader said on Tuesday that he is disappointed that "little progress" has been made in the talks to this point. Over the next two weeks, the markets are going to get whipped around like small fishing boat in 30-foot seas," a US-based gold trader said. Additionally, several hedge funds placed large sell stops after the December option expiration last night, which accelerated selling. Pressure mounted on bullion after WGC said that bullion demand in India is estimated to retreat by 19% this year from a year earlier due to the weak consumption during the first six months of the year. Demand from India is forecasted to slide to 800 tonnes by end of 2012 relative to 986 tonnes in 2011, according to the WGC. It is worthwhile to mention that concerns regarding the US fiscal cliff have caused bearishness in sentiment and reinforced demand on the dollar as a favorite refuge. Now technically market is getting support at 62170 and below could see a test of 61229 level, And resistance is now likely to be seen at 63832, a move above could see prices testing 64553.

Trading Ideas:

Silver trading range for the day is 61229-64553.

Silver ended lower due to fiscal cliff concerns and mounting euro zone tensions.

New U. S. single-family home sales fell slightly in October and sales for the prior month were revised sharply lower

Holdings at ishares silver trust dropped by 15.05 tonnes to 9803.02 tonnes